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NH Hotel Group accelerates its deleveraging process by €100M by redeeming all of the outstanding bonds issued in 2013 ahead of maturity

The company delivers its deleveraging commitments ahead of schedule


WEBWIRE
  • The transaction will generate net savings of approximately €9.6 million

NH Hotel Group announced the full redemption and cancellation of the €100 million outstanding of the senior secured notes issued in 2013 in the amount of €250 million. The redemption will be completed on November, 30th and will be funded with a mix of available cash and temporarily with short-term credit facilities. The transaction will generate net interest savings of around €9.6 million between 30 November 2017 and 15 November 2019, which is when the bonds would have matured.

The redemption and cancellation of the notes marks a significant milestone in the execution of the company’s business plan. The purpose of the transaction is to reduce gross debt and the average cost of its long-term debt, while extending its average tenor.

Pursuant to the terms and conditions of the issuance, the cancellation will be completed pursuant the voluntary early redemption process that allows NH to redeem the 2013 Notes as from 15 November 2017 at 103.438% of their nominal value, plus accrued and unpaid interest from the last interest payment date to the redemption date.

After the redemption announced today, and without considering the temporary use of short-term credit facilities, the average cost of the company’s debt will fall from 4.2% to 3.8%; its average tenor will increase from 4.4 to 4.7 years, and the gross debt will stand at around €740 million. Also as a result of this redemption, the syndicated revolving credit facility arranged in 2016 for €250 million will remain fully undrawn and its maturity will be automatically extended to 2021.

Following the issuance of senior secured notes carried out in 2016 and 2017, which had already significantly reduced the company’s average borrowing cost and extended its maturity profile, NH Hotel Group completes the refinancing of its long-term debt with this redemption. The only debt instrument now due in the medium term are the €250 million convertible bonds due November 2018 with a conversion price of €4.919/share (last close: €5.33).

About NH Hotel Group

NH Hotel Group (www.nhhotelgroup.com) is a world-leading urban hotel operator and a consolidated multinational player. It operates close to 400 hotels and almost 60,000 rooms in 31 markets across Europe, the Americas and Africa, including top city destinations such as Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Düsseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.


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